At Pulse 2016, SaaStr’s Customer Success for Start-ups track was one of the most popular series of sessions in the entire conference. This is a transcript of a really valuable panel featuring Jason Lemkin (SaaStr), Matt Garratt (Salesforce Ventures), Cliff Cate (ToutApp), and Joe Loveless (PowerDMS).
Jason: All right. Good afternoon, everybody. I think we’ve got about four sessions here mostly targeted on some of our favorite themes around learnings from building your first customer success team. And I just wanna highlight a couple quick things from it. Do we have a clicker? I’ll just use this manual clicker. Where is the screen? Oh, on the side.
Jason: All right. Our first session is one of the first things that I learned really about the magic of customer success is second order revenue. And as we were all figuring customer success out a few years ago, everyone is about CAC ratios, customer lifetime value, what’s my magic number, and all of this. And then having been a founder that had taken something from nothing to tens of millions in SaaS, I realized that we’re missing at least half the story, which is second order revenue. And I built this chart a few years ago, which was my epiphany, which was how much is a customer worth? And we get the first year ACV, and then on the left we get upgrades, and they buy more, and we have what we call now net negative churn. And then it gets even better. Our champions quit after all our hard work of getting them, and they go to another customer and they bring it in. And then, finally, word of mouth and influencers work, but it all takes years.